While worries about Greece continue to loom in the background, investors were encouraged by a reading on Germany's business conditions that rose for a fourth straight month in February -- the highest level since July, according to the Munich-based Ifo institute.

Meanwhile, the European Commission said Thursday that it expects the eurozone will likely face a mild recession in 2012, thanks to negative growth in Greece, Portugal, Spain and four other countries.

Art Hogan, managing director at Lazard Capital Markets, said markets are 'more resilient' in the face of negative economic data now than in 2011, when stocks had wild 100-point swings on the tiniest negative (or positive) headline.

In the United States, the number of workers filing for unemployment in the United States was 351,000, the Labor Department reported before markets opened. That's slightly better than analysts' forecasts and unchanged from the week prior, which was revised up from 348,000.

U.S. stocks drifted lower Wednesday, amid doubts over the latest bailout for Greece and some negative indicators out of China and Europe.

"We know that story's not over, but the ECB has eliminated a Lehman event," Hogan said, referring to the European Central Bank's long-term refinancing operation that has pumped billions of euros worth of 3-year loans into the banking system, helping quell contagion worries.

Following a parliamentary vote Thursday, the Greek government is expected to go ahead as planned and announce its proposal to swap existing debt with new bonds on Friday.

Companies: T-Mobile, owned by Germany's Deutsche Telekom (DT), said "not carrying the iPhone led to a significant increase in contract deactivations in the fourth quarter of 2011." The company lost 526,000 customers during the quarter, compared to adding 126,000 during the third quarter of 2011.

Sears Holdings (SHLD, Fortune 500) reported earnings that fell far short of forecasts. Shares of the retailer spiked after the company said it planned to sell of some of its stores in an effort to raise $400 million to $500 million. The retailer -- which also owns Kmart as well as the Kenmore, Craftsman and Lands' End brands -- has been struggling for months.

Target (TGT, Fortune 500) reported better-than-expected fourth-quarter earnings, and said it expects profit growth of 3% to 8% this year.